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Undoubtedly, that is the argument that the drug companies will make, that with less profit, they will claim that they will have to lower R&D
However, if they don't do the research and development, they won't come up with the next breakthrough drug, nothing to sell, so they might think twice about cutting those costs, look elsewhere, start with those outrageous CEO's salaries instead? That is the way fair competition should work
I heard someone recently make the point that significant medical research is done in State & government universities, funded by taxpayers, who don't benefit financially from that research. Instead it is the pharmaceutical companies that market the drugs based on that research that get ALL the profit. Hmm..